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Sundance, China group deal close

CHINA'S privately owned Hanlong Group has said it is close to finalising the acquisition of Australia's Sundance Resources, a mining firm that controls a major iron ore mine in West Africa.

Such a move would give China a stronger role in setting global iron ore prices.

China's official Xinhua News Agency reported at the weekend that Hanlong plans to complete the acquisition of Sundance Resources for 45¢ a share by March 1, after submitting paperwork to the Australian Securities and Investments Commission. The report cited officials from Hanlong, based in southwestern China's Sichuan province.

The prospect of a takeover appeared remote earlier this month following Hanlong's request to delay the bid because it could not secure funding by December 13.

Even so, Sundance directors continued to explore options to strike a deal with Hanlong.

Sundance controls the Mbalam iron ore mine, which straddles Cameroon and the Republic of Congo.

Hanlong is seeking a partnership with Chinese state-owned companies and investing $4.8 billion to develop the Mbalam project and to build a 550-kilometre railway and a shipping port, Xinhua said. Operations are expected to begin in 2014.

As the world's second-largest economy, China is eager to acquire overseas assets and resources to feed its rapid growth.